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The second quarter was one of high drama in the markets and exchange traded funds (ETFs). Much of the volatility came from fears of a worsening debt crisis in Europe that threatened to have a worldwide contagion effect.

For both the month and the quarter, all major indexes were down. The Dow Jones Industrial Average was off by 3.6% for the month and 10% for the quarter. The S&P 500 declined 5.4% for the month and 11.9% for the quarter. The Nasdaq fell 6.5% for the month and 12% for the quarter. All three indexes also closed out the quarter below their long-term trend lines (the 200-day moving average).

Few sectors and global regions emerged victorious this quarter. In fact, most of the best-performing areas were those that gave investors some measure of protection from the market’s unpredictable moves, including the PowerShares DB U.S. Dollar Bullish (NYSEArca: UUP) and Treasuries. The top-performing Treasury ETF was the PIMCO 25+ Year Zero Coupon U.S. Treasury (NYSEArca: ZROZ). [Fixed-Income ETFs: Still a Sound Strategy?]

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.